Zillow Return On Equity vs. Net Income
| ZG Stock | USD 82.33 0.46 0.56% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.03) | Current Value (0.04) | Quarterly Volatility 0.15018972 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.85 | 0.7835 |
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For Zillow profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Zillow to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Zillow Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Zillow's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Zillow Group over time as well as its relative position and ranking within its peers.
Zillow |
Zillow's Revenue Breakdown by Earning Segment
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Is Real Estate Management & Development space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Zillow. If investors know Zillow will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Zillow listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.25) | Earnings Share (0.58) | Revenue Per Share 9.29 | Quarterly Revenue Growth 0.171 | Return On Assets (0.02) |
The market value of Zillow Group is measured differently than its book value, which is the value of Zillow that is recorded on the company's balance sheet. Investors also form their own opinion of Zillow's value that differs from its market value or its book value, called intrinsic value, which is Zillow's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Zillow's market value can be influenced by many factors that don't directly affect Zillow's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Zillow's value and its price as these two are different measures arrived at by different means. Investors typically determine if Zillow is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zillow's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Zillow Group Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Zillow's current stock value. Our valuation model uses many indicators to compare Zillow value to that of its competitors to determine the firm's financial worth. Zillow Group is rated first in return on equity category among its peers. It is rated first in net income category among its peers . At this time, Zillow's Return On Equity is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Zillow by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Zillow Net Income vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Zillow |
| = | -0.029 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Zillow |
| = | (158 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Zillow Net Income Comparison
Zillow is currently under evaluation in net income category among its peers.
Zillow Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Zillow, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Zillow will eventually generate negative long term returns. The profitability progress is the general direction of Zillow's change in net profit over the period of time. It can combine multiple indicators of Zillow, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -5 M | -4.8 M | |
| Operating Income | -270 M | -256.5 M | |
| Income Before Tax | -154 M | -161.7 M | |
| Total Other Income Expense Net | 116 M | 121.8 M | |
| Net Loss | -158 M | -165.9 M | |
| Income Tax Expense | 4 M | 4.2 M | |
| Net Loss | -157 M | -164.8 M | |
| Net Loss | -90.9 M | -95.4 M | |
| Interest Income | 117.1 M | 122.9 M | |
| Non Operating Income Net Other | 49.5 M | 51.9 M | |
| Net Interest Income | -36 M | -37.8 M | |
| Change To Netincome | 601.5 M | 631.5 M | |
| Net Loss | (0.68) | (0.71) | |
| Income Quality | (2.24) | (2.35) | |
| Net Income Per E B T | 1.03 | 0.72 |
Zillow Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Zillow. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Zillow position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Zillow's important profitability drivers and their relationship over time.
Use Zillow in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Zillow position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zillow will appreciate offsetting losses from the drop in the long position's value.Zillow Pair Trading
Zillow Group Pair Trading Analysis
The ability to find closely correlated positions to Zillow could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Zillow when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Zillow - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Zillow Group to buy it.
The correlation of Zillow is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Zillow moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Zillow Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Zillow can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Zillow position
In addition to having Zillow in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Your Current Watchlist. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
To fully project Zillow's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Zillow Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Zillow's income statement, its balance sheet, and the statement of cash flows.